Question Bank with Answers – Personal Selling (Unit 1)

 

Question Bank with Answers – Personal Selling (Unit 1)

1.1 Nature and Importance of Personal Selling

2 Marks

Q1. Define personal selling.
Answer:
Personal selling is a face-to-face communication process where a salesperson interacts directly with customers to persuade them to purchase goods or services. It involves understanding customer needs and providing suitable solutions through personal interaction.

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5 Marks

Q2. Explain the nature of personal selling.
Answer:
The nature of personal selling lies in its personal and interactive approach. It is a two-way communication where the salesperson can adapt the sales pitch according to the customer’s needs. Personal selling is flexible, persuasive, and relationship-oriented. Unlike advertising, it provides immediate feedback and helps in handling objections, making it highly effective for high-value or complex products.

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10 Marks

Q3. Discuss the meaning and importance of personal selling in detail.
Answer:
Personal selling is the process of direct interaction between a salesperson and a potential buyer with the purpose of persuading the buyer to make a purchase. It is highly significant in business because:

1. It creates awareness and educates customers about products.

2. It helps in building trust and long-term customer relationships.

3. Salespersons can customize solutions to meet customer needs.

4. It assists in handling objections and clearing doubts.

5. It is vital in industries like real estate, insurance, and B2B markets.
   Thus, personal selling not only generates sales but also ensures customer satisfaction and loyalty.

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1.2 Distinctions – Personal Selling, Salesmanship, and Sales Management

2 Marks

Q4. State one difference between personal selling and salesmanship.
Answer:
Personal selling refers to the process of direct interaction with customers to promote sales, while salesmanship is the skill or art of convincing customers during that process.

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5 Marks

Q5. Explain the difference between personal selling and sales management.
Answer:
Personal selling is the act of directly persuading customers to purchase, usually carried out by salespersons. Sales management, on the other hand, involves planning, supervising, and controlling the salesforce and strategies at the organizational level. For example, a salesperson selling an insurance policy is personal selling, while the manager deciding sales targets and training is sales management.

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10 Marks

Q6. Discuss the distinctions among personal selling, salesmanship, and sales management.
Answer:

• Personal Selling: The process of face-to-face communication between buyer and seller to achieve sales. Example: a salesperson explaining features of a car.

• Salesmanship: The skill, persuasion, and ability of a salesperson to convince customers. Example: handling objections and closing deals.

• Sales Management: The broader function of planning, organizing, and directing the salesforce, setting targets, and evaluating performance. Example: designing sales quotas.
  These three are interconnected but operate at different levels: salesmanship is a skill, personal selling is the act, and sales management is the strategy.

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1.3 Salesperson Characteristics

2 Marks

Q7. Mention one essential trait of a good salesperson.
Answer:
One essential trait of a good salesperson is strong communication skills, which help in convincing customers and building trust.

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5 Marks

Q8. List and explain any three qualities of a successful salesperson.
Answer:
A good salesperson should have:

1. Product Knowledge: Deep knowledge builds confidence.

2. Honesty: Customers trust transparent salespersons.

3. Empathy: Understanding customer needs improves satisfaction.
   These qualities ensure effective sales interactions and long-term customer relationships.

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10 Marks

Q9. Discuss in detail the essential traits of a good salesperson.
Answer:
The effectiveness of personal selling depends on the salesperson’s qualities, such as:

1. Product Knowledge – Confidence in explaining features.

2. Communication Skills – Clear, persuasive, and empathetic interaction.

3. Honesty & Integrity – Builds long-term trust.

4. Patience & Confidence – Necessary to handle rejection.

5. Customer Orientation – Putting customer needs first.

6. Good Personality & Appearance – Leaves a positive impression.
   A salesperson with these traits becomes not only a seller but also a trusted advisor to the customer.

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1.4 Types of Selling Situations and Salespersons

2 Marks

Q10. Give one example of a selling situation.
Answer:
A customer purchasing life insurance after meeting an agent is an example of a selling situation.

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5 Marks

Q11. Explain order-getters and order-takers.
Answer:

• Order-Getters: Salespersons who actively convince customers and generate new sales (e.g., insurance agents).

• Order-Takers: Salespersons who simply record customer orders without much persuasion (e.g., retail store clerks).
  Both play vital roles in sales but require different skill sets.

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10 Marks

Q12. Discuss the types of selling situations and types of salespersons with examples.
Answer:
Types of Selling Situations:

1. Consumer Selling: Selling directly to individuals (e.g., cosmetics, insurance).

2. Industrial Selling: Selling to businesses (e.g., raw materials, machinery).

3. Trade Selling: Supplying goods to retailers/wholesalers (e.g., FMCG distribution).

4. Missionary Selling: Promoting but not directly selling (e.g., pharma reps to doctors).

Types of Salespersons:

1. Order Takers – Handle routine sales.

2. Order Getters – Actively persuade customers.

3. Technical Salespersons – Provide technical support along with sales.

4. Creative Salespersons – Consult and build long-term relationships.
   These roles vary based on the industry, customer, and product type.

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1.5 Limitations of Salesmanship

2 Marks

Q13. State one limitation of salesmanship.
Answer:
One limitation of salesmanship is that it is expensive, as it involves travel, commissions, and high training costs.

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5 Marks

Q14. Explain any three limitations of salesmanship.
Answer:

1. High Cost: Personal selling requires more investment compared to advertising.

2. Limited Reach: A salesperson can contact only a limited number of people daily.

3. Time Consuming: Sales interactions require more time than mass selling tools.
   These make it less suitable for low-cost, mass-consumption products.

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10 Marks

Q15. Discuss the limitations and challenges of salesmanship.
Answer:
While salesmanship is effective, it has limitations:

1. Costly: Involves high expenses on commissions, training, and travel.

2. Time-Bound: A salesperson can only cover a small customer base at a time.

3. Dependency on Individual Skill: The success depends on the salesperson’s personality, knowledge, and persuasion.

4. Inconsistent Results: Different salespersons deliver varying outcomes.

5. Scalability Issue: Not suitable for mass markets like FMCG, where advertising is more cost-effective.
   Thus, while valuable for complex and high-value products, salesmanship cannot be the sole tool for sales.